Flexible spending accounts allow active employees, but not retirees, to set aside pre-tax money to be used for certain allowable health care or dependent care purposes; the annual limit for a dependent care account is $5,000, the annual limit for a health care account is $2,500.

A health care FSA terminates as of the date of your separation. You will not receive the balance in your account as a refund. Any health care expenses incurred prior to the date of separation will still be reimbursable but those incurred after the date of separation will not.

A dependent care account balance at the time of separation will still be available to you for any eligible expenses incurred within the plan year.

Claims can be submitted up to May 31 following the end of a plan year, although the expense must have been incurred within the plan year, which includes a six-week grace period after the end of the pertinent calendar year.